Russia’s economy and military expenditures
This chapter analyses the tendencies in the Russian economy and military expenditure in the 2000s. Economic growth is an important factor explaining growth in a country’s military expenditure. It highlights the new trend of lower military expenditure in 2018–2020 and its implications. The chapter reviews the development of the Russian economy under Vladimir Putin. It discusses Putin’s plans for the economic development during his fourth presidency. Russia’s economic development took off in 1999 after the Russian state had defaulted on its debt in 1998. During the 1990s, economic reforms had been undertaken to turn the Soviet command economy into a market economy. During Putin’s third presidency, Russia gave priority to high defence spending and building military strength despite a considerable weakening of economic growth. The military reform launched in 2008 was intended to reform the Armed Forces to restore their strength and reputation.